Capital market key to bridge infrastructure financing gap: DCCI president
He also said the capital market has a huge potential to address the CMSME financing gap as well as encourage businesses to source long-term capital reducing dependence on banks and NBFIs
The capital market could play a pivotal role in reducing the estimated investment gap of $192 billion in the infrastructure sector from 2016-2040.
Current trend indicates that Bangladesh will be able to meet USD 417 billion investment in the infrastructure sector, leaving the financing gap of USD 192 billion from 2016-2040.
The capital market can play a pivotal role to reduce the investment gap in Bangladesh, said Rizwan Rahman, president of Dhaka Chamber of Commerce & Industry (DCCI).
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He made the comment during a courtesy call with Professor Shibli Rubayat-Ul-Islam, chairman of Bangladesh Securities and Exchange Commission today (19 December) in BSEC headquarter, Agargaon, said a press release.
During the discussion, DCCI President said Bangladesh will need to invest USD 608 billion from 2016 -2040 in infrastructure sector as per the "Global Infrastructure Hub Report".
"To encourage good companies and pursue well-performing large corporates for listing in the capital market, the tax difference between listed and non-listed companies should be rationalized," he remarked.
He also said the capital market has a huge potential to address the CMSME financing gap as well as encourage businesses to source long-term capital reducing dependence on banks and NBFIs.
"The DSE SME platform needs to be effectively operationalized as well as listing rules for SME Platform needs to be relaxed," he mentioned.
"To create a vibrant secondary bond market, priority needs to be given to implementing enabling policy to develop market infrastructure, simplification of the bond issuance process, tax incentives for both issuer and investors, and credible credit rating by the national as well as international credit rating agencies," he continued.
BSEC Chairman Professor Shibli Rubayat-Ul-Islam said that BSEC already organised several "Road Shows" in the UK, USA and Switzerland to attract foreign investment in the capital market as well as to brand Bangladesh.
"Another one will be organised in Qatar in next month," he informed.
Prof Shibli then invited DCCI to join the "Road Show" to showcase Bangladesh's economic advancement.
He also said, "The government of Bangladesh is business friendly and we all should uphold the positive image of Bangladesh in the international arena."
He sought cooperation from the private sector to expedite country branding in a much wider manner.
He said, "Bangladesh has done tremendous progresses in many sectors especially in the infrastructure sector but these achievements did not get much promotion."
DCCI Vice President Monowar Hossain was also present on the occasion.
